Resumption of Indian Parts Supply... Kia Seltos Production "Takes a Breather"

Normalization of Supply for 3.5-inch Indian Clusters
Seltos Expected to Resume Normal Production Starting This Week

[Asia Economy Reporter Kim Ji-hee] Kia Motors' flagship sport utility vehicle (SUV), the Seltos, which had been hampered by supply issues of Indian-made parts, will resume normal production starting this week.

According to industry sources on the 11th, Seltos production at Kia's Gwangju Plant 1 will be normalized from this week. Since mid-last month, production had been disrupted due to a shortage of 3.5-inch clusters (instrument panels). At the end of March, the Indian government decided to shut down major production facilities due to the spread of COVID-19, causing the local Korean partner company responsible for producing and supplying these parts to halt operations.

In particular, this part is standard equipment on all three trims of the Seltos sold domestically, which exacerbated the impact. Kia considered switching the supply line to the partner's factory in China, but this facility also used Indian-made parts, so no alternative was found. For the time being, Kia responded by recommending switching to the 7-inch cluster, which is only available as an option on the highest trim. However, demand for the 7-inch option was low, and most Seltos production was halted.

With the local parts factory resuming operations on the 6th, the domestic Seltos production line will also return to normal. Kia has decided to use air freight to expedite parts procurement. Since the Seltos line has been operating mainly for models with existing inventory, it is expected that production can return to normal as long as there are no inventory issues.

Accordingly, sales of the Seltos, which faced a crisis for about a month due to parts shortages, are expected to regain momentum. Even before production disruptions, the Seltos was so popular that it required about a two-month wait from contract to delivery. Debuting in the domestic market in July last year, the Seltos sold over 30,000 units within six months, quickly becoming a best-selling model. This year, it recorded sales of 18,009 units through April, ranking first in sales among Kia's SUV lineup.

An industry official said, "Using air freight, parts can be supplied from India within 10 hours," adding, "While other Kia domestic plants are repeatedly temporarily closed due to export volume adjustments, the Seltos production is expected to rapidly increase through overtime work and other measures."

This content was produced with the assistance of AI translation services.